Comments by "Julian Petkov" (@julianpetkov8320) on "Why most of our money isn't real" video.

@johnnyharris Your deposit is the "reserve". The banks are Federal Reserve Credit - Retailers. They don't loan out deposits. When you borrow they submit an electronic request to the Federal Reserve to create the money out of thin air, then lend it to them so they can lend it to you. The Federal reserve checks how much "reserve" the bank holds and lends it money according to the required "reserve" ratio. The more "reserves" the more money out of thin air the banks can get. This is also known as Inflation or Diluting the Value, and it is a quasi-legalised form of Theft.
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